The Gaston Browne Administration
Must Explain the $220 Million Half-Year Deficit Despite Higher Taxes
I call on the Gaston Browne Administration to explain how a massive $220 million deficit resulted during the first 6 months of 2024, despite record taxation.
The 2024 Budget projected revenue of $1.2 billion and expenditure of $1.3 billion, which would result in a shortfall of $100 million over a 12-month period.
Shockingly, the Cabinet recently reported a $220 million deficit for the months of January to June 2024. This, they claim is the result of $780 million of spending, which far exceeded the $560 million in revenue collected during that period. In other words, the Government overspent collected revenue by 39%.
I therefore ask the Gaston-led Government the following questions:
– How did they amass this massive deficit despite the Prime Minister’s claims of spending reduction, waste elimination and improved tax collection?
– How did the Government manage to overspend collected revenue by 39% despite the Customs Comptroller, Raju Boddu’s boast of 20% revenue growth during the same period?
– What are the specific areas of overspending which are responsible for the deficit?
– What is the projected deficit for the second half of the year? Is our nation in for another shock at the end of the 2024 budgetary period?
– Is this massive deficit driving the continuing increase in taxes, such as the new Sugary Drinks tax?
– Is this massive deficit responsible for Government’s continued late payment and non-payment of the local businesses it owes?
– Is the Government planning even more borrowing and tax hikes to cover the deficit?
– What specific fiscal measures will be employed to ensure this situation does not re-occur during the next six months and beyond?
It must be noted that no cost of living reduction programmes were launched between January and June, which could explain a $220 million gap between revenue collection and expenditure. Local businesses are still owed huge sums by Government. Further, our rundown infrastructure does not tell a tale of increased spending.
My constituents and, by extension, the people of Antigua and Barbuda are justifiably concerned and demand answers on this massive deficit, which points to poor planning and wasteful spending. In our local parlance, they are asking “where de money garn?”
Richard S. Lewis MP
Advertise with the mоѕt vіѕіtеd nеwѕ ѕіtе іn Antigua!
We offer fully customizable and flexible digital marketing packages.
Contact us at [email protected]
Do not hold your breath, this government will never give any explanation.
I do recall people like Tenman and a handful of ABLP supporters earlier in the year who were following the predicted forecasts of financial growth, and I put to them that you cannot rely on PREDICTIONS but FACTUAL financial figures that benefits Antigua in the long term.
And here we are with a $220 million dollar half-year deficit.
What have these PREDICTED ABLP SUPPORTERS got to say about this now?
They’ll say nothing and keep dem mout’ zip-up when they are wrong – again – and the going gets tough for their beloved Gaston Browne once more.
@Brixtonian July 24, 2024 At 2:40 pm
You are again showing your ineptness. The country, according to ALL the reputable institutions including IMF, WorldBank, CDB and ECCB will experience ECONOMIC Growth things year of 5 to 6 percent. And the Prime Minister said that this is very conservative and predicts about 8 to 10%. Do not and I mean DO NOT confuse ECONOMIC growth with Finance Revenue Growth. Richard Lewis is again speaking out of ignorant of economic principles. I could have a company that have increased sales and yet I have no money on the bank to spend. This could be because of several factors. You could have more expenses, or you could have lots of receivable outstanding. Or you may have old debt to pay. Richard should ask himself those questions first. The other day when they had the proceed of the Alfa Nero they decided to use it to pay of debt. That would bring down their Debt to GDP ratio. Which gives you more financial space to borrow new debt. It’s like this. I have a debt of 1 million at the bank and they ask me to pay it off because it is delinquent. I win the Lotto and chose to payoff the debt so that now I’m current and then ask the bank to lend me 1 million again. Fresh money. You guys really need to have lessons in economics and finance. But then again you all head are hard.
This needs to come from MR. PRINGLE! Richard Lewis you have NO CREDIBILITY!!! You are a WEAK, SELF-SERVING, POMPOUS 🤡
At least MR. PRINGLE didn’t meet with his opponent to secure an “exit strategy” from UPP and try run way to Jamaica to escape the MAN COW and LIMPY JOE.
Always a look attention for himself. Let MR. PRINGLE take on his rightful role. No wonder Gisele can’t tek u or your Jamaican wife!! So nuff and edge up and lub publicity…..PRINGLE is the leader, NOT you!!!
@Smh July 24, 2024 At 4:17 pm
I’m glad it didn’t come from Pringle this time. Because it is a very stupid question. It shows he has no clue about economic and financial principles. He needs to study the Budget and he would have seen that the estimates predicted a deficit for the year. Nothing new here. And the revenue intake was calculated with the increase taxes.
What Richard should study is how Gaston Browne was able to keep Antigua and Barbuda in 2014 when he took over the government from the UPP, out of the hands of the IMF. Because the country was bankrupt and the debt to GDP was over 100 percent.
@lets we forget.
Are you a bloody fool?
What you just explained is a failed company/government. One that is bankrupted or someone is robbing the people left right and center.
Who the hell wants a failed or bankrupt company taking care of their finances?
So what you just explained in all that BS, repeating yourself multiple times,does not help your cause.
If any company/government continuously run at a deficit, they need to shut down and close their doors, because how you got to a deficit in the first place, shows, piss poor management.
So please come again with all the bullshit.
Mr Lewis have legit questions.
Where is all this money gorn, especially when it’s not showing in our terrible infrastructure?
Bwoi the ABLP sure have some scammers in their mix..pure Ponzi Scheme dem a run pan Antiguan’s to rarse.
@Islanman26 July 24, 2024 At 7:17 pm
Just for your edification. Do not compare government to a company. Government is continuous, a company goes bankrupt and is liquidated. Do you know what the debt stock of the USA government is? Trillions of dollars. But they continue and sadly enough they print money too. Small countries like Antigua and Barbuda fortunately do not have that luxury. We need to ensure we keep a certain expectable ratio of Debt to GDP. Most favorable is 70%. A company’s debt to Equity ratio cannot be that high at all, or no one would ever credit them. And because government is continuous we do not write off government debt in our books. We don’t even provide for it either. Government accounting is not the same as Private sector accounting. Government use what is called Modified Cash Accounting. It’s meanly about Revenues and Expenditures. And looks more like a Cash Flow. With the different categories like Cash from Operations, Cash from Financing, Cash From Investing and same with the Expenses. The Balance Sheet does not represent all the Assets the Government has. No Buildings No Cars, No Equipment and No Land. But that’s enough for now. You will need to pay for more lessons. But then again. You most likely do not understand a damn thing I wrote here.
@lets we forget..
Is that the buffoonery you go around and tell people, to explain the rampant corruption in this present Government?
Your tutorials on financing is lacking at best. Accounting is not rocket science fool.
You simple can’t spend what you don’t have or have the potential to make, and expect to survive..it’s that simple.
The word ” accountant” simple means you have to be accountable, to give an account for..it’s not rocket science.
So this government simple have to give account for the spending of money that they don’t have or have the potential to gain, it’s that simple.
So Mr Lewis Questions are reasonable, whether you are a company or a government.
And most of the US debt is swallowed up in the military and their space expedition, so at least they can give an ” account” for it.
What is Antigua spending/debt is related to you fool?
Now do you understand the Questions that are asked?
Talk talk talk just to try and cover up the BS that’s going on in this island..that’s all you fools do..
Gullible as hell.
@ LESS WE FORGET
It would appear that Brixtonian showing that He is a NOVICE when it comes to Finance. Brixtonian does not understand the between FINANCIAL and ECONOMIC growth. I am sick and tired of Him blabbing His mouth in this forum without doing His research.
Brixtonian is so much against ABLP that He will sell His soul. I hope you will learn something from here forward.
So the financial dunce comes yearly,bragging about growth WITHOUT presenting the audited reports of the government’s spending as required by law,and we must not take a $220 million deficit seriously?
That’s the problem with these Labourites. The facts stare them in the face,they are living the failures in every aspect of society, driving on dangerous roads,running out of place to bury our dead,and we must not question?
I don’t give a damn what “reputable ” sources say about growth, I live in Antigua and there is absolutely nothing that supports that rhetoric.
What is “growing” here is corruption, skulduggery, treachery, poverty, crime,joblessness, and the politicians and their cronies pockets.
Comments are closed.